Period 3Q12
Actual vs. Expectations
The 9M12 core net profit of RM352m came
in above expectations and accounted for 83% and 79% of ours and the consensus’
full year FY12 forecasts respectively.
Dividends A
single tier interim dividend of 6 sen was declared. At the same time, MAHB has
proposed a Dividend Reinvestment Plan (DRP) to shareholders via the issuance of
new shares in MAHB. The shareholders have to write in to express their interests
in the scheme.
Key Results Highlights
For 9M12, MAHB’s revenue increased by 14% due
to higher tariff on PSC, landing and parking charges during the period. To
recap, the new PSC charges took effect in Sept 2011 with staggered increases in
the landing and parking charges from 2012 to 2014. However, the core net profit
only increase by 6% to RM352m due to the increase in the operating cost (+16%).
Its associate, MALE contributed c. RM20m to the pre-tax profit.
YoY, the 3Q12 core
net profit increased marginally by 2% despite the 11% rise in the revenue
(excludes construction revenue). This was mainly due to a higher staff cost
which increased by 9% on the back of additional recruitments, annual increments
and salary adjustments.
QoQ, the core net
profit and revenue dropped by 4% and 7% respectively. This was due to a lower construction
revenue recognised during the period. However, after stripping out the construction
revenue recognition, the revenue actually grew by 11% and the core net profit dropped
by 5%. The drop in the core net profit was primary due to the rise in airline
incentives by 27%.
Outlook The
company should see less volatile earnings going forward as it will not have to
account further for SGIA losses, which has exceeded the initial investment
cost.
As for the DRP plan,
we expect the maximum dilution at 3% based on a 16.1 sen dividend for FY12 and
share price of RM5.87.
Change to Forecasts
We have tweaked our
FY12-13E higher by 4% and 3% respectively as we imputed in the contribution
from its associate, MALE.
Rating MAINTAIN
OUTPERFORM
Valuation We
have revised our TP higher to RM6.66 from RM6.45 based on SoP valuation.
Risks (1)
Longer recovery for MAS’ business turnaround (2) A significant drop in
AirAsia’s passenger numbers.
Source: Kenanga
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